ReportsnReports | Tissue and hygiene in canada

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ReportsnReports | Tissue and hygiene in canada

  1. 1. ReportsnReports | Tissue and Hygiene in CanadaSaturation, the weak economy and demographic trends affect the performance of the marketIn 2010 tissue and hygiene saw a modest increase in current value terms, as many key categoriescontinued to be affected by saturation, slow population growth, unfavourable demographic trends interms of the ageing population and the slow pace of economic recovery, which saw consumerswatching their budgets. Retail tissue remained amongst the most affected by saturation, reflected inslow volume gains, whilst slow movement in nappies/diapers/pants and sanitary protection reflectedthe shrinking consumer base and the growing proportion of older people. Bright spots, however,included home care wipes and incontinence products, with sales of the former driven by healthydemand for convenient cleaning options, whilst the latter benefited from the growing proportion ofolder people.Browse All : Market Research ReportPrice increases are mitigated by promotional activities and bulk purchasesIn the conditions of a mature market and unfavourable demographic trends, manufacturers soughtto add value by increasing prices through product development and premiumisation. However, weakeconomic recovery, continuously high unemployment and strong retail competition for consumerdollars led to price increases being mitigated by retailers’ reluctance to increase prices. In addition,there was a high level of promotional activity to maintain customer flow, and consumers opted forbulk purchases, either in the form of larger rolls or multipacks. Consequently, despite attemptedpremiumisation, value growth remained modest in 2010.Sales remain fairly consolidated, with a sizeable private label presenceRetail sales of tissue and hygiene products in Canada remained fairly consolidated in 2010; led byProcter & Gamble, Kimberly-Clark and Kruger Products. All of these companies remained active interms of marketing and product development to maintain a high degree of brand awareness, with afocus on key flagship brands, and attention also paid to eco-friendly trends. However, private labelalso retained a sizeable presence in the Canadian tissue and hygiene market, with productsmarketed towards various price tiers – from economy to premium – as well as green products. Asidefrom attracting consumers seeking value, private label has become one of the key components ofrevenue growth in a highly competitive retail environment in Canada.Grocery retailers lead, and price wars intensifyOverall, grocery retailers remained the leading distribution channel in retail tissue and hygiene inCanada in 2010, with supermarkets/hypermarkets accounting for the largest share of sales. Thelatter also saw an increase in share, as the hypermarkets format continued to expand in Canada (notleast through the ongoing expansion of Walmart Supercenters). Within grocery retailers thecompetition is intense, also reflected in retailers’ pricing strategies, with some, such as Sobeys,announcing that prices would not go up, and others, such as Walmart Supercenters, featuring strongpromotions and price discounts. The competition is likely to intensify further as Target moves into
  2. 2. Canada. Due to the strong degree of promotional activity and the consumer quest for value, retailerswhich did not compete well on pricing saw their shares of sales decline, such as small groceryretailers and health and beauty retailers (drugstores being the key channel in the latter).Modest growth ahead, as volume sales have little room for organic growthOver the forecast period the issues of market saturation and demographic shifts will remain on theagenda; thus only modest increases in constant value terms, and slow/marginal growth in volumeterms are projected for the next five years for many key categories in tissue and hygiene. Whilstincremental product innovation and further attempts at premium positioning, chiefly throughmarketing, will be seen once again, these will have limited opportunities to drive significant growth.Table of ContentsTissue and Hygiene in Canada - Industry OverviewEXECUTIVE SUMMARYSaturation, the weak economy and demographic trends affect the performance of the marketPrice increases are mitigated by promotional activities and bulk purchasesSales remain fairly consolidated, with a sizeable private label presenceGrocery retailers lead, and price wars intensifyModest growth ahead, as volume sales have little room for organic growthKEY TRENDS AND DEVELOPMENTSDemographic trends remain a challenge for some, and an opportunity for othersThe focus on value continues as economic recovery is slowGreen is still on the agendaMarketing and presentation are in the spotlightRetailers battle for share in the conditions of slow recoveryMARKET INDICATORSTable 1 Birth Rates 2005-2010Table 2 Infant Population 2005-2010Table 3 Female Population by Age 2005-2010Table 4 Total Population by Age 2005-2010Table 5 Households 2005-2010Table 6 Forecast Infant Population 2010-2015Table 7 Forecast Female Population by Age 2010-2015Table 8 Forecast Total Population by Age 2010-2015Table 9 Forecast Households 2010-2015MARKET DATATable 10 Retail Sales of Tissue and Hygiene by Category: Value 2005-2010Table 11 Retail Sales of Tissue and Hygiene by Category: % Value Growth 2005-2010Table 12 Tissue and Hygiene Retail Company Shares 2006-2010Table 13 Tissue and Hygiene Retail Brand Shares 2007-2010Table 14 Penetration of Private Label by Category 2005-2010Table 15 Retail Sales of Tissue and Hygiene by Distribution Format: % Analysis 2005-2010
  3. 3. Table 16 Retail Sales of Tissue and Hygiene by Category and Distribution Format: % Analysis 2010Table 17 Forecast Retail Sales of Tissue and Hygiene by Category: Value 2010-2015Table 18 Forecast Retail Sales of Tissue and Hygiene by Category: % Value Growth 2010-2015DEFINITIONSSummary 1 Research SourcesTissue and Hygiene in Canada - Company ProfilesCascades Inc in Tissue and Hygiene (Canada)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONPRIVATE LABELFempro Inc in Tissue and Hygiene (Canada)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONPRIVATE LABELIrving Tissue Corp in Tissue and Hygiene (Canada)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONCOMPETITIVE POSITIONINGSummary 6 Irving Tissue Corp: Competitive Position 2010Kruger Products Ltd in Tissue and Hygiene (Canada)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONCOMPETITIVE POSITIONINGSummary 8 Kruger Products Ltd: Competitive Position 2010Away-From-Home Tissue and Hygiene in Canada - Category AnalysisHEADLINESTRENDSIn 2010 demand for AFH tissue and hygiene products remained somewhat slow. This was particularlythe case with tissue products, which continued to be affected by the slow pace of recovery, includingstill high unemployment, the slow pace of foodservice recovery and the slow pace of recovery ofbusiness activity. In 2010 total sales of AFH products reached C$553 million, with an increase of 3%in current value terms.PROSPECTSOver the forecast period, AFH tissue and hygiene is expected to see a CAGR of 2% in constant valueterms. Volume sales are expected to see modest increases across various product categories, fallingbehind value growth, which is indicative of further price increases for tissue and hygiene products, asmanufacturers will pass higher production costs along the supply chain.
  4. 4. CATEGORY DATATable 19 Away-From-Home Sales of Tissue and Hygiene by Category: Value 2005-2010Table 20 Away-From-Home Sales of Tissue and Hygiene by Category: % Value Growth 2005-2010Table 21 Away-From-Home Sales of Tissue and Hygiene by Distribution Format: % Analysis 2005-2010Table 22 Away-From-Home Sales of Tissue and Hygiene by Category and Distribution Format: %Analysis 2010Table 23 Forecast Away-From-Home Sales of Tissue and Hygiene by Category: Value 2010-2015Table 24 Forecast Away-From-Home Sales of Tissue and Hygiene by Category: % Value Growth2010-2015Cotton Wool/Buds/Pads in Canada - Category AnalysisHEADLINESTRENDSIn 2010 retail sales of cotton wools/buds/pads in Canada reached C$63 million, increasing by 2% incurrent value terms, whilst remaining largely flat (slight positive trend) in volume terms. Theseproducts have nearly universal household penetration, and are used for a variety of purposes.COMPETITIVE LANDSCAPEAlthough Unilever Canada and its Q-Tips brand remained the leading branded product in 2010, witha 36% share of value sales, it was private label which controlled sales overall, with a 50% share ofvalue sales in 2010 in GBO terms.PROSPECTSOver the forecast period, cotton wool/buds/pads is projected to reach sales of C$67 million, with aCAGR of 1% in retail constant value terms and a CAGR of 1% in volume terms.CATEGORY DATATable 25 Retail Sales of Cotton Wool/Buds/Pads: Value 2005-2010Table 26 Retail Sales of Cotton Wool/Buds/Pads: % Value Growth 2005-2010Table 27 Retail Sales of Cotton Wool/Buds/Pads by Type: % Value Breakdown 2007-2010Table 28 Cotton Wool/Buds/Pads Retail Company Shares 2006-2010Table 29 Cotton Wool/Buds/Pads Retail Brand Shares 2007-2010Table 30 Forecast Retail Sales of Cotton Wool/Buds/Pads: Value 2010-2015Table 31 Forecast Retail Sales of Cotton Wool/Buds/Pads: % Value Growth 2010-2015Incontinence in Canada - Category AnalysisHEADLINESTRENDSWhilst other hygiene products, such as sanitary protection and nappies/diapers/pants, wereunfavourably affected by demographic shifts in Canada, these shifts were good news for incontinenceproducts. The trend towards an ageing population stood behind the healthy demand for incontinenceproducts, which increased by 6% in current value terms and 4% in retail volume terms in 2010.COMPETITIVE LANDSCAPERetail sales of incontinence products remained fairly concentrated in 2010, with Kimberly-Clarkleading with a 58% share of value sales. SCA Hygiene Products Canada was in second position with a30% share. Procter & Gamble had a small presence, with a 3% share of value sales, and privatelabel accounted for a 6% share of value sales in GBO terms in 2010.
  5. 5. PROSPECTSOver the forecast period retail sales of incontinence products are expected to continue to experiencehealthy growth, with a projected CAGR of 5% in constant value terms over 2010-2015, to reachC$194 million. Healthy growth is also expected in volume terms, reflecting actual consumer demandfor these products.CATEGORY DATATable 32 Retail Sales of Incontinence by Category: Value 2005-2010Table 33 Retail Sales of Incontinence by Category: % Value Growth 2005-2010Table 34 Incontinence Retail Company Shares 2006-2010Table 35 Incontinence Retail Brand Shares 2007-2010Table 36 Forecast Retail Sales of Incontinence by Category: Value 2010-2015Table 37 Forecast Retail Sales of Incontinence by Category: % Value Growth 2010-2015Nappies/Diapers/Pants in Canada - Category AnalysisHEADLINESTRENDSSimilar to other hygiene products, demand for nappies/diapers/pants in Canada is largely driven bythe expansion or contraction of the respective consumer base of children of nappy/diaper-wearingage. Overall, nappies/diapers have nearly universal penetration in households with children in thecountry. Canada, however, continues to experience an ageing population. Although a small babyboom did occur in 2007 and 2008, on the whole the birth rate in the country remains low todeclining.COMPETITIVE LANDSCAPEKimberly-Clark and Procter & Gamble remained the two principal marketers of nappies/diapers/pantsin Canada in 2010, with a combined value share of 74%. Kimberly-Clark maintained its lead overProcter & Gamble, with the former holding a 44% share and the latter a 30% share of value sales. Ahigh level of consolidation, and active marketing and promotional activities on the part of bothcompanies are behind the negligible share moves between the two contenders on an annual basis.PROSPECTSOver the forecast period retail sales of nappies/diapers/pants are expected to be almost static inconstant value terms, and are projected to decline by a CAGR of 1% in volume terms. In actual valueterms, retail sales are expected to reach C$630 million.CATEGORY DATATable 38 Retail Sales of Nappies/Diapers/Pants by Category: Value 2005-2010Table 39 Retail Sales of Nappies/Diapers/Pants by Category: % Value Growth 2005-2010Table 40 Nappies/Diapers/Pants Retail Company Shares 2006-2010Table 41 Nappies/Diapers/Pants Retail Brand Shares 2007-2010Table 42 Forecast Retail Sales of Nappies/Diapers/Pants by Category: Value 2010-2015Table 43 Forecast Retail Sales of Nappies/Diapers/Pants by Category: % Value Growth 2010-2015Retail Tissue in Canada - Category AnalysisHEADLINESTRENDS
  6. 6. In 2010 retail tissue in Canada showed a modest increase of 2% in current value terms, against a1% gain in volume terms, to reach a total of C$1.7 billion. In constant value terms, the growth trendwas in most parts consistent, with slow growth of retail tissue in Canada seen during the reviewperiod. These products are household staples, with practically universal level household penetrationfor products such as toilet paper, which creates a challenging environment for manufacturers andretailers to grow sales any further. Price increases and attempts to move consumers to higher-pricedpremium-positioned products were key components of value growth in 2010.COMPETITIVE LANDSCAPERetail sales of tissue products are quite consolidated in Canada; essentially, five manufacturers andprivate label accounted for a 95% share of value sales in 2010. Private label in fact led with a 32%share of sales in GBO terms. For the rest, Kruger Products, Procter & Gamble, Irving Tissue,Kimberly-Clark Canada and Cascades accounted for a combined 63% share of value sales in 2010.PROSPECTSOver the forecast period, retail tissue is expected to grow only modestly, with a CAGR of 1% in retailconstant value terms, to achieve sales of C$1.8 billion in 2015. Volume sales are also only expectedto see a modest CAGR of 1%. Although some products are indispensable (such as toilet paper),tissue products are staples in Canada which have been available for many years, and have by nowmostly reached the limit as far as product development and innovation are concerned. Thecombination of these factors stands behind the projected slow increase in demand and sales.CATEGORY DATATable 44 Retail Tissue Sales by Category: Value 2005-2010Table 45 Retail Tissue Sales by Category: % Value Growth 2005-2010Table 46 Retail Tissue Company Shares 2006-2010Table 47 Retail Tissue Brand Shares 2007-2010Table 48 Forecast Retail Tissue Sales by Category: Value 2010-2015Table 49 Forecast Retail Tissue Sales by Category: % Value Growth 2010-2015Sanitary Protection in Canada - Category AnalysisHEADLINESTRENDSIn 2010 retail sales of sanitary protection in Canada saw a modest increase of 2% in current valueterms, to reach C$385 million. The modest increase was largely in line with the growth trend seen inCanada over the review period. Volume growth in most categories fell behind value growth; onceagain indicative of price increases as a driving force behind value growth.COMPETITIVE LANDSCAPEOverall, sanitary protection in Canada remained fairly consolidated in 2010, and was led by Procter &Gamble, Kimberly-Clark Canada and Johnson & Johnson (Canada). Together these three companiesaccounted for an 80% share of value sales. Both Procter & Gamble and Kimberly-Clark saw sharegains in 2010 over the previous year, whilst Johnson & Johnson experienced a slight decline due tostrong competitive activity from the former two players.
  7. 7. PROSPECTSSanitary protection in Canada is expected to reach retail sales of C$391 million in 2015, and over theforecast period is it expected see a negligible positive CAGR in constant value terms and a marginaldecline in volume terms in most categories. Sanitary protection products are necessities, withpurchases and use driven by demographic shifts in the female population. These trends are expectedto remain negative in Canada, with the number of post-menopausal women increasing, whilst theproportion of girls and women in the age group 10-54 is expected to see a further decline, from 31%in 2011 to an estimated 30% in 2015.CATEGORY DATATable 50 Retail Sales of Sanitary Protection by Category: Value 2005-2010Table 51 Retail Sales of Sanitary Protection by Category: % Value Growth 2005-2010Table 52 Retail Sales of Tampons by Application Format: % Value Analysis 2005-2010Table 53 Sanitary Protection Retail Company Shares 2006-2010Table 54 Sanitary Protection Retail Brand Shares 2007-2010Table 55 Forecast Retail Sales of Sanitary Protection by Category: Value 2010-2015Table 56 Forecast Retail Sales of Sanitary Protection by Category: % Value Growth 2010-2015Wipes in Canada - Category AnalysisHEADLINESTRENDSOn the whole, convenience remained a prevailing trend which crossed all wipes products and stoodbehind healthy demand in Canada. In 2010 retail sales of wipes saw an increase of 5% in currentvalue terms, with positive growth recorded in volume terms across many product categories.COMPETITIVE LANDSCAPERetail sales of wipes remained highly consolidated in 2010, with Procter & Gamble by far theprincipal player in the country, with a 56% share of value sales. Kimberly-Clark was a distantsecond, with a 14% share of value sales in 2010. Unlike in many other tissue and hygienecategories, the share of private label remained small, with no significant gains over the reviewperiod, including in 2010.PROSPECTSOver the forecast period, wipes overall is expected to see a CAGR of 2% in retail constant valueterms, to reach C$523 million in 2015. Convenience will remain the key driving force behind demandfor and sales of wipes, as they have increasingly become indispensable in many Canadianhouseholds.CATEGORY DATATable 57 Retail Sales of Wipes by Category: Value 2005-2010Table 58 Retail Sales of Wipes by Category: % Value Growth 2005-2010Table 59 Wipes Retail Company Shares 2006-2010Table 60 Wipes Retail Brand Shares 2007-2010Table 61 Forecast Retail Sales of Wipes by Category: Value 2010-2015Table 62 Forecast Retail Sales of Wipes by Category: % Value Growth 2010-2015
  8. 8. Latest Market Research Reports:The Outlook for Pharmaceuticals in North East AsiaEmerging Drug Delivery Technologies & Strategies – Players, Pipelines & PartnershipsConcentrating Solar (CSP) MarketWestern European Disposable Gloves MarketWorld Dynamic Publishing Solutions MarketU.S. Department of Defense: Unmanned Aircraft System Ground Control Stations and Data LinksAn Executive Analysis on Passenger Rail Rolling Stock and Seating Systems Market in the U.S.About Us:ReportsnReports is an online library of over 75,000 market research reports and in-depth marketresearch studies & analysis of over 5000 micro markets. We provide 24/7 online and offline supportto our customers. Get in touch with us for your needs of market research reports.Follow us on Twitter: http://twitter.com/marketsreportsOur Facebook Page: http://www.facebook.com/pages/ReportsnReports/191441427571689Contact:Mr. Priyank7557 Rambler road,Suite 727, Dallas, TX 75231Tel: + 1 888 391 5441E-mail: sales@reportsandreports.comhttp://www.reportsnreports.comVisit Our Market Research Blog

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